The Japanese live in tiny houses and just love big, expensive hifi. Tannoys & elegant tube concoctions all shoehorned into small apartments.
Don't think about size....In the uk we tend to go too small anyway. Too many people are seduced by dealer hype and fashion. Small speakers = small sound. Or rather, compromised lower end. Go for balance in the frequency range.
Many of the posts here refer to uncompromising decorative operative requirements (the missus says no).
Go for the new £1000 B&W floorstanders (can't remember the numbers) as speakers and invest in cables too.
Great interconnects and speaker wire does make a difference. Team up with a turntable (250 quids worth would do it with a £300 cartridge) or a good Cd player from one of the stalwarts. A secondhand Naim would be a good move at about 400 quid.
The amp is up to you but be careful because an awful lot of guff is talked about amps. Don't assume pricey is best. Maybe a second hand amp or something which could be expanded to a pre /power combo later ? Roksan perhaps? A lot of Naim stuff all together can sound a bit....errrr Sterile , unless you really go with the big wonga upfront.
Remember. It's all very, very subjective. Listen and learn. Try LOADS of stuff before you buy.